Market Recap for Dec 2nd 2011 18 points!

If you are ever in Kenya make sure to drink a Tusker!

Welcome back to Nairobi, Kenya!  I have my Tusker beer ready to watch today’s market.  I explored most of the eastern realm of the continent and achieved all my goals of visiting Somalia, South Sudan (world’s newest country), and even day trading in many of the countries that I visited.  Soon I will start posting my day trading offices from around the world, so far my office in Argentina & Madagascar are my favorites.  I have some very exciting news and also some very bad news to share today.

Which would you like first?

I’ll be a gentlemen and pick for you.  The good news is that the coaching process for many of the students is going exceptionally well.  Many of the senior traders are starting to adapt to the methodology while many of the new traders are also learning quite a bit and keeping me busy!  On a side note did anyone else notice the paper clipboard mouse pad? lol

Since I am so passionate about trading I plan giving a Christmas present to everyone so they can achieve their dreams like I have.  I have found some help to assist me with the day to day admin processes of the coaching process and the site so I plan on offering everyone a very special training process for Christmas.  If you are interested in learning how to day trade I’d highly recommend that you sign up for updates below!

The bad news is today is  my last day in Africa. I have been here so long I have become accustomed to the inefficiencies of the great continent and getting yelled “white person” on the street.  Since I will be in 3 different airports I’m really excited to test some of the internet speeds and report back how the trading went via the airport internet.

And now on the to the good stuff! The recap for Dec 2nd:

I missed two great trades on the downtrend, one because I wasn’t looking at the premarket activity and the second because my order wasn’t filled.  Life isn’t fair my mother told me.  Trade 1 is a picture perfect trade since we had great momentum to the downside.  T2 is more aggressive since I didn’t have all the criteria met for the trade.  Normally I wouldn’t take this trade but since we were getting strong spikes down I decided to pull the trigger.  You can see the X marked just after T2 which is a trade that we should all avoid because of the market environment.

Not looking at anything else other than the market environment, look at how the behavior of the market went from downtrend to sideways.  Those are the kinds of things that we have to pay attention to in order find areas that we should both take advantage of and areas that we should avoid.

There was a quick reversal and I immediately jumped into T3, the strength the market made me adjust my target and I actually waiting for a slowdown here rather than having a fixed target.  While I would love to impress you and show you that I exited on the edge I actually missed out on roughly 1.25 pts.  No trader is perfect but if I have a trade that wins for over 3 pts I am more than happy with that.

Actually I take that back imaginary traders are perfect

T4 and T5 changed a bit, I had to react very fast since T4 was filled on the edge.  This isn’t what I had planned on but it worked out in my favor since I was abl to get filled on T5 and get a huge winner.  I normally don’t take two trades at the same area but it worked out well here.    T6 happened to be end of the trend so I entered aggressively and exited conservatively at the first area.

I’d like you focus very closely on the entry on T7.  I didn’t enter this trade right away because we didn’t have confirmation of a very strong move back to the downside.  I allowed the market just enough time to give me the answer of where it was heading and entered just before the it tanked.  I quickly took T8 as well which is a great trade that just didn’t work out.

With such a strong move to the downside I took T9 to try and reach the outerbands.  The market didn’t make it that far so I only lost two ticks on the trade, there goes lunch!  T10 is a picture perfect trade that has a very complex analysis to it.

One one hand the market gave us a very (very) strong move to the downside.  This means that we would need to see a significant amount of strength in the opposite direction of the trend (back to the upside) in order to take a trade.  We did receive that confirmation but the most important part of this step is after we get in the trade.  We want to see an immediate pop in the direction of the trade or otherwise we want to be out of the trade faster than Oprah gets out of a diet.

You can see the beginning of the strong move just after I entered and I quickly exited the trade knowing that it wasn’t going to run for very long.  The next area where the X is labelled goes back to the last explanation.  We haven’t seen an extended move to the upside which means that the market is more likely to continue back down.  After that was the trade of the day, T11.  We needed to break through an initial support area but you can see the quick pop to the outer band.  This is what I call an SNP, snap-crackle-pop.  When you have that kind of move you are surely to get that strong of a continuation.

My taxi driver is here to take me to the Nairobi international airport, see you in Colombia!

Dec 2nd Results

• Total of 11 Trades
• 2 missed trades
• 9 winners
• 81% winners
• 81.82% win ratio